EUR: Range bound trading - BBH

Analysts at BBH note that the euro remains in a range with the bottom is near $1.22 and the top near $1.24 and as there were a few violations last month but attempts to play a breakout were quickly punished.   

Key Quotes

“The fact that the euro has gone nowhere in the face of widening differentials (two-year spread has widened from 200 bp to nearly 300 bp over the past six months), fairly consistent downside data surprises this year, and the ECB pushing unusually hard against hawkish comments by one of the national central bank governors, speaks to its resilience.  Three-month implied volatility has now completely unwound the run-up in the middle of Q1 and below 6.5% is the lowest since mid-January.  There may be some more scope for a near-term decline, but it has not been below 6% since 2014.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.